The parametric method: what answers can it provide when we have a bit more data?
Methods for assessing the economic performance of a project

Whenever the project permits, we focus on a "product line". One of the most effective methods, the parametric method, involves linking economic data to the project's technical data. Here are a few examples:

• One might think that the production cost of an engine is linked to its power.

• Similarly (historical example), the production cost of a camping tent is linked to the number of poles.

• Finally, the cost of running a telemarketing service depends on the number of people working in it.

Readers can imagine why for themselves.

The parametric method involves asking the question (and/or the experts in the relevant departments) as to which parameter could be used.

• Experts...